I get the irony - an accountant knowing their numbers. But I see it more times than not, a principal or partner cannot confidently give me their numbers or honestly answer that they review numbers and KPIs at least monthly.
You are telling your clients they should be doing it but not practising what you preach.
The answer to many of your own problems lie in your numbers. Just the thing you are the expert at.
But what numbers - in this weeks Modern Firm Practices Show
I walk through a flip-chart full of P&L line items and KPIs including the financial performance metrics and non-financial activities and KPIs you should be tracking.
I did purposefully leave two off the list but they are just as important and they relate to cashflow - I’m sure you can guess. I’ll be joining a superstar panel of speakers in the coming weeks to talk on these specific cash metrics and will share an invite in Modern Firm Weekly.
So if you are telling your clients they need to have their books up to date and should run regular reports and review and make business improvement decisions - you should also be practising this.
Many firms have partners who are spending too much time on client work (much of which low-value) and not enough on business development, low average client group fees, write-offs that are so big it makes your eyes water, crazy lock up days and low average hourly rates. These are all symptoms as to why you are working your tail off and not being richly rewarded for you efforts.
The first step is regularly reporting and getting a baseline on where you are at right now. Matched to the financial and time freedoms that you want, you can start to influence these numbers to work for you (not you working for them). This will require some new modern firm decisions that you might not have made before.
Because the thinking that got you to where you are is not going to get you to where you want to be.
It starts with gauging where you are at then pulling the right levers to get you to where you want to be.
Until next week,